GST Calculator


Tally Solutions | Nov-22-2019

GST calculator

Couple of years into the GST era, most businesses have become conversant with the basic information they need to be on top of, as far as their goods and services are concerned. The information is nothing but – the GST rates, HSN codes, SAC codes etc. which will help them to calculate GST faster, prepare GST compliant invoices faster and therefore, conduct businesses faster.

However, there are many scenarios, wherein a businessman may be faced with an amount excluding GST, or with an amount including GST. In the fast-paced business world, one needs to know the quickest method to determine both GST exclusive and GST inclusive prices, so as to make quick sales and purchase decisions. Most countries have found useful in these circumstances a GST calculator, India too will be no different. In fact with the right knowledge of the formula, one can create a GST tax calculator in excel and keep it handy. However, the first step to be able to maintain and use a GST calculator, is to be familiar with the GST rates.

GST rates

GST rate schedule for goods

Under GST, there are 7 specified rates for goods, each of which have been classified under a Schedule in the GST Rates Booklet for Goods. They are as follows:

  • Schedule I: Nil Rated
  • Schedule II: 0.25%
  • Schedule III: 3%
  • Schedule IV: 5%
  • Schedule V: 12%
  • Schedule VI: 18%
  • Schedule VII: 28%

Under each Schedule, the full list of specified Goods has been provided under two columns – "Chapter/Heading/Sub-heading/Tariff item" which provides the information of the HSN Codes & "Description of Goods" which provides the unique description of the goods for the benefit of the business.

GST rate schedule for services

Under GST, there 5 specified rates for services, each of which have been classified in the GST Rates Booklet for Services. They are as follows:

  • Nil Rated
  • 5%
  • 12%
  • 18%
  • 28%

GST tax calculator

Due to the simplification of the indirect taxation regime, the calculation of the applicable taxes has become much simpler. The GST rates applicable on the various goods or services can now be calculated, based on the nature of the transaction – inter-state or intra-state.

Intra-state GST tax calculator

In case of Intra-State transactions, GST can be calculated as follows:

  • CGST = Applicable GST Rate / 2 (for 28%, CGST will be 28/2=14%)
  • SGST / UTGST = Applicable GST Rate / 2 (for 28%, SGST will be 28/2=14%)

In other words, CGST + SGST / UTGST = Applicable GST Rate

Inter-State GST tax calculator

In case of Inter-State transactions, GST can be calculated as follows:

  • IGST = Applicable GST rate

Note: Wherever applicable, GST Compensation Cess should be added to the applicable GST rate for the correct tax calculations. Even a GST credit calculator, will be based on the same principles.

Thus, a simple formula arises:

  • GST Amount = (Original Cost*GST Rate Percentage) / 100
  • Net Price = Original Cost + GST Amount

Inclusive GST calculator

However, in those cases, where a price inclusive is mentioned, a reverse GST calculator will need to be applied. Like above, this also will be based on a simple formula:

  • GST Amount = GST Inclusive Price * GST Rate /(100 + GST Rate Percentage)
  • Original Cost =  GST Inclusive Price * 100/(100 + GST Rate Percentage)

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